30
QuizMultiple Choice

Social Security and Medicare

Question 30 • FL-2102373-Personal Finance and Money Management Honors

For each of the following wages, determine the Medicare tax that would be withheld.i. $23,660ii. $89,000iii. $166,090

Answer
A
i. $343.07ii. $1,290.50iii. $2,408.31
B
i. $3,430.70ii. $12,905.00iii. $24,083.05
C
i. $146.70ii. $551.80iii. $1,029.76
D
i. $1,466.92ii. $5,518.00iii. $10,297.58

Explanation

Medicare tax is 1.45% of wages, so multiply each wage by 0.0145. The results are $23,660 × 0.0145 = $343.07, $89,000 × 0.0145 = $1,290.50, and $166,090 × 0.0145 = $2,408.305, which rounds to $2,408.31. These amounts match choice a.

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